¿Contract arras contract sale?

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When buying a home or property whether it is more convenient to sign a contract pledging or private purchase frequently arises.

Basically, the difference is that a cthentrato of arras we can not make the sale of the property: The buyer may waive the purchase losing the amount given as a deposit and the seller may refrain from operation returning double the amount paid in respect of deposit. In both cases, without justification (art. 1.454 Civil Code).

In the event that it had signed an contract of sale, resolution is not provided, if not for breach of the other party.

In this manner, depending on the situation, may be more convenient to sign a contract deposits on a contract of sale. When the housing market was on the rise, promoters were interested in signing contract deposits: if the property price still rising, could return (although duplicate) the earnest and the business round out, because month to month, prices increased outrageously. The customary amount of a arras varies between 5% and 15% of the property value. Occasionally, these percentages were overwhelmed in a matter of a few quarters, especially when the purchase was made plan, and operation of returning the deposit and sale to a new customer was round.

In any case, It is recommended that the contract the will of the parties is clearly expressed leave, namely, a clause stating that such "" the amount is delivered "as a deposit as provided in article stated 1.454 the Civil Code ". This way you can avoid the occasional lawsuit.

Also, is necessary to establish the amount of the earnest, the selling price of the property and the deadline for the sale deed.

The lack of time, let the contract in a situation of uncertainty unwise. Generally, usually within two or three months, time in which the buyer can manage the corresponding bank financing.

Despite having received an earnest, is not recommended for the seller or delivery of keys or allow the works before the sale is formalized in writing.

In the case of private purchase contract, is not possible to resolve whether there has been breach of the other party, to be substantially (missing the deadline to formalize writing, uninhabitable housing or inability to use a local). Small defects in the finished, are not sufficient cause to terminate the contract.

Returning to contract deposits, distinguish Three types, confirmatory arras, earnest money deposit and criminal.

Arras confirmatory

They are the "signal" or proof of a contract: It advances or payments of money but fail to settle the contract. If it does not say anything in the contract, and it does not clearly specify the type of deposit, considered confirmatory. Article Applies 1.124 Civil Code. If the contract is terminated, there would be a compensation for damages, to be fixed in the circumstances.

arras confirmatorias

 

Arras Penalties

Besides being a payment on account of price, ensure that the contract is fulfilled. Should be established clearly criminal character. You can terminate the contract amount the buyer losing their, or returning duplicate the seller. It is a way of limit the possible compensation for damages, in case of default. The penalty, replaces the compensation. All, without prejudice to the possibility of moderation by Judge. It is regulated in Articles 1.152, 1.153 and 1.154 Civil Code.

arras penales

Penitential Arras

It also called arras of withdrawal, because to settle the contract legally, losing the amount the buyer or by the seller by returning duplicate, within the meaning of Article 1.424 Civil Code. Only considered as penitential as expressly stated in the contract.

arras penitenciales

Ultimately, these nuances can make a significant difference in case of conflict so if you have to sign a earnest money contract or a contract of sale of housing, read recommend that you consult a attorney experienced in real estate law.

Consult your case now

Contract Deposits

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